Question

What is the purpose of Simulation Analysis in Capital Budgeting?

a.

Identifying proposed investments

b.

Randomly testing various aspects to identify associated risks

c.

Allocating resources for capital projects

d.

Assessing and evaluating proposed investments

Posted under IC 89 Management Accounting

Answer: (b).Randomly testing various aspects to identify associated risks Explanation:Simulation Analysis involves randomly testing various aspects to identify associated risks and make proper analyses.

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Q. What is the purpose of Simulation Analysis in Capital Budgeting?
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